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Mr . Wong, began his role as Finance Manager at Sincere Sweet Limited ( SSL ) , a Hong Kong - based company, on 1

Mr. Wong, began his role as Finance Manager at Sincere Sweet Limited (SSL), a Hong Kong-based company, on 1 May 2021. His responsibilities included overseeing and managing the operations of SSL's various group companies across the Asia Pacific region, including Hong Kong. Throughout his employment, he has had to travel to different Asian cities, spending 126 days outside of Hong Kong in the year ending 31 March 2023.
For the year ending 31 March 2023, Mr. Wong's income and expenses included:
i. a monthly salary of $90,000
ii. a monthly travel allowance of $10,000.
iii. On 1 November 2022, he bought a flat in Hong Kong for $10 million, mortgaging it for $6 million. SSL agreed to cover any mortgage interest over 2% per annum. From
November 2022 to March 2023, he paid $111,300 in interest and received a $28,800
subsidy from SSL.
iv. After moving into the flat, SSL arranged for a domestic helper costing $5,400 per month and covered his utility bills, totaling $9,200 for the five months ending 31 March 2023. SSL also provided a car and driver, with the car leased in SSL's name for $8,000 per month and the driver hired for $20,000 per month. Mr. Wong paid the $42,000 in petrol and maintenance costs, which were reimbursed by SSL. The car was used for both business and personal purposes, with an 80:20 ratio.
v. Due to an accident, Mr. Wong was hospitalized for 10 days, incurring $88,000 in medical costs. 80% was covered by insurance, and he claimed the remaining balance from SSL.
vi. SSL also reimbursed half of his $22,000 annual gym membership fee.
vii. He received a discretionary bonus based on SSL's profitability, with $40,000 paid in April 2022 for 2021 and $50,000 paid in January 2023 for 2022. He donated half of these amounts to The Community Chest of Hong Kong.
viii. Mr. Wong also enrolled in an MBA program at Hong Kong Metropolitan University, paying $120,510 in tuition fees. He made mandatory contributions of $18,000 to the MPF scheme and paid $100,000 in qualifying annuity premiums on 6 January 2023. Mrs. Wong is a housewife and they have a 12-year-old son. Mr. Wongs father, aged 75, lives in a registered nursing home in Macau, to which Mr. Wong paid $60,000 in residential fees. His mother, aged 68, lives in Macau, and he sends her $6,000 monthly for living expenses.
Required:
(a) Compute the Hong Kong salaries tax liability of Mr. Wong for the year of assessment 2022/23, assuming that he would claim whatever deductions or allowances which are applicable. Ignore provisional tax and any tax reduction in your calculation.
(34 marks)
(b) If later Mr. Wong receives a Notice of Assessment from the Inland Revenue Department and finds that it is not correct, state what he should do in order to lodge an objection against the Notice of Assessment.
(6 marks)
(c) With reference to the Inland Revenue Ordinance, discuss the liability test and convertible to cash test which used to determine the taxability of fringe benefits under an employment. Comment on Mr. Wongs remuneration package whether it is an effective tax saving arrangement.
(30 marks)

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